**Wed May 5,2010
LONDON (AFP) – World oil prices slumped on Wednesday after the euro hit a new one-year dollar low point amid worries about debt-laden Greece which shook global financial markets, traders said.

Brent North Sea crude for June delivery tumbled 2.45 dollars to 83.22 dollars a barrel in London trade.
LONDON (AFP) – World oil prices slumped on Wednesday after the euro hit a new one-year dollar low point amid worries about debt-laden Greece which shook global financial markets, traders said.

Brent North Sea crude for June delivery tumbled 2.45 dollars to 83.22 dollars a barrel in London trade.

"Oil pulled back as the dollar hit one-year highs and concerns over the health of the eurozone economies gripped markets once again," said analyst Marius Paun at trading house ODL Markets, in a note to clients.

"With traders fleeing the euro, they sought the relative security of the dollar, which put some downside pressure on oil.

"The overriding concern about the strength of the global recovery also sent jitters across commodity markets, with traders concerned that any issues in Greece may halt the recovery."

In foreign exchange trade on Wednesday, the European single currency slid to 1.2804 dollars -- hitting the lowest level since March 12, 2009.

Financial markets have come under heavy pressure after eurozone finance chiefs had over the weekend approved an unprecedented three-year package of loans for debt-ridden Greece.

Of the 110 billion euros (145 billion dollars) to be made available to Greece, the eurozone is set to provide 80 billion and the International Monetary Fund 30 billion.

And in a policy U-turn, the European Central Bank agreed to accept Greece's junk-rated government bonds as collateral for loans.